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Conventional Loan

Featuring End of Watch Loan Protection








About Conventional Loans

Conventional mortgages are the preferred option for most borrowers with higher credit scores and income. Conventional mortgages can be used to purchase primary residences, secondary residences, and investment properties.
It’s possible for first-time home buyers to qualify with a down payment as low as 3%. However, the down payment requirement can vary depending on your personal situation and the type of loan (or property) you’re getting:
 
  • If you have been on the title of a home in the last three years, the down payment requirement is 5%
  • If you are buying a multi-unit property, the minimum down payment required will be 5%
  • If you’re buying a second home, you will need to put at least 10% down
  • If you’re getting an adjustable-rate mortgage, the minimum down payment requirement is 5%
  • If you’re refinancing a conventional loan, you’ll need more than 3% equity













Conventional Loan Advantages

There are several ways that a conventional mortgage could give home buyers a head start over other buyers who have lesser qualifications.
 
Homeowners with good credit and funds for a larger down payment could avoid paying upfront mortgage insurance or paying monthly mortgage insurance like an FHA loan. Other advantages include:
Faster Loan Underwriting
Conventional loans can require less paperwork and can be obtained more quickly than government-insured loans. Mortgage lenders can approve conventional loans without the typical delays incurred with FHA or government-backed loans. Additionally, with a conventional loan, sellers do not face an exhaustive FHA inspection, which often requires time-consuming repairs.
More Options
Conventional loans come in all different types and sizes.
Optional Escrow Accounts
A conventional loan generally offers an option to pay taxes and insurance directly, without adding them to your monthly mortgage payment.
Security
Conventional mortgages are usually fixed-rate products, meaning that once an interest rate is locked in, the borrower will keep that same payment for the life of the loan. Borrower’s payments stay the same month to month, as opposed to adjustable-rate loans, which can fluctuate after closing. 













































































Who Gets a Conventional Loan?

Private Mortgage Insurance (PMI) is required for all conventional loans with less than 20% down. The cost for PMI will vary depending on your loan type, credit score, and down payment amount. PMI is generally paid as part of your monthly mortgage payment, but some buyers pay it as an upfront fee included in their closing costs – others will pay it in the form of a slightly higher interest rate.
 
This PMI will automatically fall off your monthly mortgage payment once you reach 22% equity in your home, or you can contact your lender to request the removal of PMI when you reach 20% equity in your home.
 
Other requirements for a conventional loan include:
 
  • Credit score: You will generally need a credit score of at least 620 to qualify for a conventional loan, although a score above 740 will help you get the best rate.
  • Debt-to-income ratio: Your debt-to-income ratio (DTI) is a percentage that represents how much of your monthly income goes towards paying off debts. For most conventional loans, your DTI needs to be 50% or lower.
 

End of Watch Loan Protection

Police Mortgage Conventional Loans qualify for End of Watch Loan Protection, a special debt cancellation benefit created exclusively for active, full-time First Responders.



























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For First Responders Who Are Second To None!

 
Contact us to learn more about our End of Watch Loan Protection.